INVESTMENT SECURITIES

12 Months Ended

Jun. 30, 2022

INVESTMENT SECURITIES

INVESTMENT SECURITIES

5.        INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities are as follows (dollars in thousands):

	June 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	380,708	$	143	$	(15,005)	$	365,846
Municipal obligations		115,480		55		(182)		115,353
Other debt securities		320		326		(55)		591
Total available for sale securities	$	496,508	$	524	$	(15,242)	$	481,790
Securities held to maturity:
Corporate debt securities	$	20,000	$	—	$	(1,349)	$	18,651
Municipal obligations		3,952		—		(136)		3,816
Total held to maturity securities	$	23,952	$	—	$	(1,485)	$	22,467
Equity securities:
Common stock	$	1,040	$	999	$	—	$	2,039
Total equity securities	$	1,040	$	999	$	—	$	2,039

	June 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	216,155	$	121	$	(235)	$	216,041
Municipal obligations		47,800		6		(9)		47,797
Other debt securities		424		385		(45)		764
Total available for sale securities	$	264,379	$	512	$	(289)	$	264,602
Securities held to maturity:
Corporate debt securities	$	7,000	$	—	$	(20)	$	6,980
Municipal obligations		3,878		61		—		3,939
Total held to maturity securities	$	10,878	$	61	$	(20)	$	10,919
Equity securities:
Common stock	$	1,463	$	1,416	$	—	$	2,879
Total equity securities	$	1,463	$	1,416	$	—	$	2,879

The estimated fair value and gross unrealized losses aggregated by security category and length of time such securities have been in a continuous unrealized loss position, is summarized as follows (dollars in thousands):

	June 30, 2022
	Less than 12 Months				12 Months or Longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Securities available for sale:
U.S. Government and agency obligations	$	76,252	$	(3,771)	$	265,828	$	(11,234)	$	342,080	$	(15,005)
Municipal obligations		81,522		(182)		—		—		81,522		(182)
Other debt securities		53		(3)		137		(52)		190		(55)
	$	157,827	$	(3,956)	$	265,965	$	(11,286)	$	423,792	$	(15,242)
Securities held to maturity:
Corporate debt securities	$	18,651	$	(1,349)	$	—	$	—	$	18,651	$	(1,349)
Municipal obligations		3,816		(136)		—		—		3,816		(136)
	$	22,467	$	(1,485)	$	—	$	—	$	22,467	$	(1,485)

	June 30, 2021
	Less than 12 Months				12 Months or Longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Securities available for sale:
U.S. Government and agency obligations	$	85,518	$	(235)	$	—	$	—	$	85,518	$	(235)
Municipal obligations		21,484		(9)		—		—		21,484		(9)
Other debt securities		9		(1)		165		(44)		174		(45)
	$	107,011	$	(245)	$	165	$	(44)	$	107,176	$	(289)
Securities held to maturity:
Corporate debt securities	$	6,980	$	(20)	$	—	$	—	$	6,980	$	(20)
	$	6,980	$	(20)	$	—	$	—	$	6,980	$	(20)

The above tables represent securities at June 30, 2022 and 2021, where the current fair value is less than the related amortized cost. There were 168 and 69 securities with unrealized losses at June 30, 2022 and 2021, respectively. Unrealized losses on debt securities are primarily related to increases in credit spreads since the securities were purchased. Unrealized losses on other debt securities (agency-backed and certain private-label mortgage-backed securities, asset-backed securities and collateralized mortgage obligation securities) are not considered other than temporary based upon analysis completed by management considering credit rating of the instrument, length of time each security has spent in an unrealized loss position and the strength of the underlying collateral.

During the years ended June 30, 2022 and 2021, management reviewed all other debt securities which were rated less than investment grade for impairment, resulting in no additional impairment charges in fiscal 2022 and 2021. In fiscal 2022, 54 securities with an amortized cost of $258,000 and remaining par value of $1.6 million were evaluated. In fiscal 2021, 55 securities with an amortized cost of $328,000 and remaining par value of $1.7 million were evaluated.

The table below presents a rollforward of the credit losses recognized in earnings (dollars in thousands):

Balance, July 1, 2020	$	1,214
Reductions for amounts realized for securities transactions		—
Balance, June 30, 2021	$	1,214
Reductions for amounts realized for securities transactions		(34)
Balance, June 30, 2022	$	1,180

The fair value of debt securities and carrying amount, if different, by contractual maturity were as follows (dollars in thousands). Securities not due at a single maturity date are shown separately.

	June 30, 2022
	Amortized		Estimated
	Cost		Fair Value
Securities available for sale:
Due in one year or less	$	183,663	$	182,737
Due after one to five years		312,525		298,462
Other debt securities		320		591
	$	496,508	$	481,790
Securities held to maturity:
Due in one year or less	$	2,032	$	1,896
Due after one to five years		1,920		1,920
Due after five to ten years		20,000		18,651
	$	23,952	$	22,467

During the year ended June 30, 2022, the Company received $5.3 million in proceeds from the sale of securities available for sale, realizing gross gains of $4,000. During the year ended June 30, 2022, the Company realized gross gains of $34,000 from other securities transactions. There were no sales of securities available for sale for the year ended June 30, 2021.

During the years ended June 30, 2022 and 2021, there were no sales of securities held to maturity.

During the years ended June 30, 2022 and 2021, the Company received $803,000 and $7.5 million, respectively in proceeds from the sale of equity securities.

The portion of unrealized gains and losses for the period that relates to equity securities still held at the reporting date are as follows (dollars in thousands):

	For the Year Ended June 30,
	2022		2021
Net (loss) gains recognized during the period on equity securities	$	(37)	$	1,820
Less: Net gains recognized during the period on equity securities sold during the period		17		1,190
Unrealized (losses) gains recognized during reporting period on equity securities still held at reporting date	$	(54)	$	630

At June 30, 2022 and 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our equity. As of June 30, 2022 and 2021, the carrying value of available for sale securities pledged to secure FHLBNY advances and municipal deposits was $470.6 million and $252.8 million, respectively.